Many British Columbians may be aghast at the news the federal government bought the Trans Mountain pipeline. But an equal number may believe the federal Liberals had no choice but to step in to ensure the project goes ahead.
Still, for many taxpayers, the news is a head shaker. Despite protestations to the contrary, there is no guarantee that the federal government will come out a winner. If this project was so lucrative and certain, the Texas-based company wouldn’t have sold.
Granted, some of that risk was taken on by the province of Alberta that has agreed to put up $2 billion to cover unexpected costs during the $4.5 billion sale or construction phase.
(The purchase price includes the existing pipeline, the pumping stations and rights of way, and the Westridge marine terminal in Burnaby.)
What we don’t know is if there will be a buyer at the end of the day and what the final costs of constructing the project will be ($7.4 billion is anticipated). As well, there are a number of cases before the court that could delay or jeopardize the project.
The Liberals claim BC NDP premier John Horgan forced their hand but it is more likely that Trans Mountain had the federal government in a tight spot.
